Item 2.01.  Completion of Acquisition or Disposition of Assets.

          On November 6, 2008, we and our wholly owned subsidiary, Hecla Merger Company, (“Merger Sub”), closed our previously announced transaction with Independence Lead Mines Company (“ILM”). Under the terms of the Asset Purchase Agreement with ILM dated as of February 12, 2008, as amended on August 12, 2008 (the “Agreement”), Merger Sub acquired substantially all of the assets of ILM in exchange for 6,936,884 shares of our common stock, par value $0.25 per share (the “ILM Acquisition”). The Agreement is incorporated herein by reference hereto from Exhibits 2.1 and 2.2.

Since 1958, we have owned and operated the Lucky Friday unit, a deep underground silver, lead and zinc mine located in the Coeur d’Alene Mining District in northern Idaho. During 1991, we discovered several mineralized structures containing some high-grade silver ores in an area known as the Gold Hunter property, approximately 5,000 feet northwest of the then existing Lucky Friday workings. This discovery led to the development of the Gold Hunter property on the 4900 level. Prior to the ILM Acquisition, we controlled the Gold Hunter property under certain agreements with ILM, that entitled us, as operator, to an 81.48% interest in the net profits from operations from the Gold Hunter property. Prior to the ILM Acquisition, after we had recouped our costs to explore, develop, and operate the property, ILM would have had the right to elect, within two years, to take a participating interest in the property. If ILM did not take a participating interest, it would have been entitled to an 18.52 percent net profits interest.

In March 2002, ILM, notified us of certain alleged defaults by us under a 1968 lease agreement relating to the Gold Hunter area (also known as the DIA properties) of our Lucky Friday unit. ILM alleged that we violated the “prudent operator obligations” implied under the lease by undertaking the development of the Gold Hunter project on the 4900 level, and violated certain other provisions of the lease.

In June 2002, ILM filed a lawsuit in Idaho State District Court seeking termination of the lease and requesting unspecified damages. Trial of the case occurred in late March 2004. In July 2004, the Court issued a decision that found in our favor on all issues and subsequently awarded us approximately $0.1 million in attorneys’ fees and certain costs, which ILM paid. In August 2004, ILM filed its Notice of Appeal with the Idaho Supreme Court. Oral arguments were heard by the Idaho Supreme Court in February 2006. In April 2006, the Idaho Supreme Court ruled in our favor on all of ILM’s claims.

In December 2006, ILM filed a lawsuit in the United States District Court for the District of Idaho seeking monetary damages and injunctive relief. ILM alleged that the April 2006 decision by the Idaho Supreme Court violated their civil rights and their constitutional right to due process, and also alleged that Hecla engaged in mail fraud and securities fraud during the term of the lease. In September 2007, the United States District Court for the District of Idaho granted our motion to dismiss the case in its entirety. In October 2007, ILM filed a Notice of Appeal to the United States Court of Appeals for the Ninth Circuit. In addition, in January 2007, ILM filed an action in Idaho State District Court for Shoshone County seeking rescission of the lease based upon the theory of mutual mistake. In May 2007, the District Court of the First Judicial District of the State of Idaho granted our motion for summary judgment. In July 2007, ILM filed a Notice of Appeal to the Idaho Supreme Court.

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